UK businesses to double energy costs when government will not provide support

Businesses in the UK express concerns that their energy costs will double in 2023. In their views, UK energy prices will surge when an emergency package of government support ends.

The Confederation of British Industry (CBI) carried out a survey of 700 firms. The survey showed that companies brace for higher electricity costs in April without further intervention. The lack of discounts for the wholesale cost of energy will put their business operations at risk. 

Matthew Fell, the CBI’s chief policy director, highlighted that high energy costs would affect businesses' decision-making. In his view, the government should continue to provide further support for firms in certain industries and pay special attention to small and medium-sized enterprises.

In addition to this, the survey revealed that the energy costs could rise by more than 150% if they wouldn’t be limited. The energy bill relief scheme was introduced in October. Starting April, only a few energy-intensive industries will be offered help. According to the CBI, the authorities may continue to support businesses but they will have to meet certain requirements.